Computer Hardware Asset, Depreciation, and Expense Clarification

cgsmith chris at cgsmith.net
Tue Oct 18 23:05:37 EDT 2011


We recently purchased a $1500 server.  I understand that it is an asset and
will depreciate over 7 years.  However, most examples use credit cards which
posts to the asset account.  I used my debit card (checking account) to
purchase it.

So does the transaction post to the asset account just as I would a credit
card? What about the invoice I received from newegg and pay via debit? Does
that post to the expense account?

Can someone please clarify this. 

Thank You,
Chris

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